Sterling was the worst-performing major currency in the past month, and for good reason. Can we expect a turnaround this brand new week and month?
U.K. PMI readings (starting July 1, 8:30 am GMT)
The second half of 2019 is off to a bit of a slow start for the pound as only medium-tier reports like PMI readings are on the docket this week. Still, it would help to keep tabs on the results since these are seen as leading indicators of economic performance.
First up is the manufacturing PMI, which is slated to have ticked higher from 49.4 to 49.5 in June to reflect a slightly slower pace of contraction. A stronger than expected result or one that’s enough to indicate industry expansion above 50.0 could give the pound a decent boost.
Next up is the construction PMI due on Tuesday’s London session. Now pound pairs don’t usually have a big reaction to this release, but just note that number crunchers are expecting to see an improvement from 48.6 to 49.4.Lastly, the services PMI is up for release on Wednesday’s London session and might show another 51.0 read. Sterling tends to react to this report since the sector accounts for a huge chunk of overall economic growth, so an upside surprise could assure market watchers that Brits are keeping calm and carrying on despite Brexit risks.
U.K. PM Race
The race for the Prime Minister spot is still on between former London mayor Boris Johnson and underdog Jeremy Hunt. The final vote isn’t due until July 22, which means that the focus over the next couple of week would be on their Brexit plans and what their “no deal” options would be.
Missed last week’s price action? Read GBP’s price recap for June 24-28!